Debt recovery

02/02/2024:

Wokingham Borough Council have partnered with a company called 'Payment Plan' to offer customers a more convenient and affordable way to repay their invoice.  They can chose how much to repay and over what period (subject to certain parameters).

If you have any concerns as to whether you have received a genuine text/email message, please contact us via our webchat.

How to pay your invoice

If you have received an invoice for services you have used or requested you can pay your invoice by one of the following:

• Pay online
• Direct Debit (PDF)

Council Tax and non-domestic rates

Council Tax and Non-Domestic Rates (Business Rates) are local taxes that help fund public services such as education, social care, waste collection and road maintenance.

If you do not pay your Council Tax or Business Rates on time, you may receive a reminder notice, a final notice or a summons from the council.

The council has the power to take legal action against you if you fail to pay your Council Tax or Business Rates, such as applying for a liability order, instructing enforcement agents, deducting money from your wages or benefits, or charging orders and bankruptcy.

If you are struggling to pay your Council Tax or Business Rates, you should contact the council as soon as possible to discuss your situation and arrange a payment plan. You may also be eligible for discounts, exemptions or reductions depending on your circumstances.

Reminders

A reminder notice is a letter that is sent to you if you have missed a payment on your Council Tax or Business Rates bill.

The notice will tell you how much you owe, when you need to pay it by, and what will happen if you do not pay it on time.

If you pay the full amount within 7 days of receiving the notice, you can continue to pay your council tax in instalments as normal.

If you do not pay the full amount within seven days, you will lose the right to pay in instalments and you will have to pay the whole amount for the rest of the year in one lump sum.

If you do not pay the lump sum within 14 days, the council can make an application for a summons to obtain a liability order.

If you are having difficulty paying your Council Tax, you should contact the council as soon as possible to discuss your situation and see if you can arrange a payment plan or apply for a reduction or exemption.

Final notices

Final notices for Council Tax and Business Rates are issued when you have missed at least two instalments of your Council Tax bill and have not contacted the council to arrange a payment plan.

If you receive a final notice, you must pay the full amount of the remaining balance for the year within seven days. If you do not pay or contact the council, they may take further action to recover the debt.

Further action may include applying for a liability order from the court, which gives the council the power to use enforcement agents, deduct money from your wages or benefits, or charge you for court costs.

To avoid receiving a final notice, you should always pay your Council Tax or Council Tax on time and contact the council as soon as possible if you are having difficulty paying. You may be eligible for a reduction or exemption depending on your circumstances.

Summons

A council tax summons notice is a legal document that informs you that you have not paid your council tax and that you are being taken to court for non-payment. Costs of £84.00 for Council Tax debts and £110.00 for Business Rates debts are added at this point.

The notice will tell you how much council tax you owe, the period it covers, the date of the court hearing, and the costs you will have to pay if the court grants a liability order against you.

A liability order is a court order that gives the council the power to take further action to recover the debt, such as sending enforcement agents, deducting money from your wages or benefits, or applying for your bankruptcy.

If a liability order is granted by the court, the Council, will apply for a further £46.00 costs in respect of Council Tax and £60.00 costs for Business Rates

If you receive a Council Tax or Business Rates summons notice, you should not ignore it. You should contact the council as soon as possible to discuss your situation and try to arrange a payment plan that you can afford.

You may be able to challenge the summons if you think it is incorrect or unfair. For example, if you have already paid your council tax, or if the council has not followed the proper procedure.

You can also apply for Council Tax Reduction if you are on a low income or have a disability. This may reduce the amount of Council Tax you have to pay or cancel it altogether.

If you need help with dealing with your Council Tax summons or Business Rates notice, you can contact a local advice service, such as Citizens Advice Wokingham. They can offer you free and confidential advice on your rights and options.

Attachment of earnings

An attachment of earnings is a legal order that allows a council to deduct money directly from a person's salary or benefits to recover unpaid Council Tax.

The Council can apply for an attachment of earnings order if a liability order has been obtained and the debt remains outstanding.

The Council will send a notice to the person's employer instructing them to deduct a certain amount from the person's income every pay period until the debt is cleared.

The amount deducted depends on the person's income. The deduction rate is based on a percentage of the person's net earnings (after tax and national insurance). The percentage ranges from 3 percent to 17 percent, depending on the income level and may be higher depending on the level of earnings. Two orders can be set up at one time.

The employer will send the deducted money to the council and provide a statement to the person showing the amount and date of each deduction.

The person can challenge an attachment of earnings order if they think it is wrong or unfair. They can contact the council to ask for a review or appeal to a tribunal. They can also apply for hardship relief if they are experiencing financial difficulties due to the deductions.

Attachments of benefits

An attachment of benefits order is sent to the DWP (Department for Work and Pensions) to deduct money directly from a person’s benefits to recover unpaid Council Tax.

Deductions can be made from Universal Credit, Job Seekers Allowance (Income Based), Income Support, Employment Support Allowance and Pension Credit Guarantee Credit.

Enforcement agents

Enforcement agents are authorised by the local authority to collect unpaid Council Tax or Business Rates from debtors.

Wokingham Borough Council employ 2 enforcement agents as follows:

• Bristow and Sutor

Address: Bartleet Road, Washford, Redditch, B98 0FL.

Phone: 0330 390 2010

Visit the Bristow and Sutor website.

• Marston Recovery

Address: PO Box 324, Rossendale, BB4 0GE.

Phone: 0333 320 1822

Visit the Marston Recovery website.

Enforcement agents must follow the Taking Control of Goods Regulations 2013 and the Taking Control of Goods (Fees) Regulations 2014 when carrying out their duties.

Enforcement agents can charge fees for different stages of the enforcement process, such as compliance stage, enforcement stage and sale or disposal stage:

Where goods have been removed, there will be additional sums due for storage, auctioneers, and other expenses. These fees are due from the debtor.

Enforcement agents:

• Have the power to take control of a debtor's goods and sell them to recover the debt unless the goods are exempt or protected by law.
• Can enter a debtor's property peacefully and with the debtor's consent, or through an unlocked door or gate. They cannot use force or violence to gain entry.
• Must provide the debtor with a notice of enforcement at least seven days before taking control of their goods. The notice must include details of the debt, the fees, the deadline for payment and the consequences of non-payment.
• Must also provide the debtor with a receipt for any payment made, an inventory of the goods taken into control, a notice of sale and a notice of abandonment if applicable.
• Must act fairly, reasonably, and professionally towards the debtor and respect their privacy and dignity. They must not harass, threaten, or mislead the debtor or anyone else involved in the enforcement process.

Charging Orders

The creditor can apply to the court for an order that secures the debt against the debtor's property, such as their home or land. This means that if the debtor sells or remortgages their property, they will have to pay off the debt from the proceeds.

Bankruptcy

The legal basis for making a debtor who owes Council Tax or Business Rates bankrupt is the Insolvency Act 1986, which allows a creditor to petition for a bankruptcy order against a debtor who owes more than £5,000 and has failed to pay or arrange to pay within 21 days of receiving a statutory demand.

A statutory demand is a formal notice that requires the debtor to pay the debt or propose a repayment plan within 21 days, or face bankruptcy proceedings. The creditor can issue a statutory demand after obtaining a liability order from the magistrates' court, which confirms that the debtor owes Council Tax and has not paid it.

A bankruptcy order is a court order that declares the debtor insolvent and transfers their assets and property to a trustee, who will sell them and distribute the proceeds to the creditors. The debtor will also have to follow certain restrictions and obligations, such as disclosing their financial affairs, not obtaining credit without permission, and not acting as a director of a company.

Bankruptcy can have serious consequences for the debtor, such as losing their home, affecting their credit rating, and limiting their employment opportunities. Therefore, it is usually used as a last resort by the creditor, after exhausting other enforcement methods such as attachment of earnings, enforcement agents, or charging orders.

Where the debtor is a limited company, a similar process is followed to wind the company up.

Benefits and Cost of Living help

If you are struggling, you may be entitled to further support. Read our Benefits page for further information.

The Council Tax team may also consider using its discretionary powers to reduce the amount of Council Tax due, where a resident can evidence that they are suffering financial hardship and a reduction would benefit the Borough's Council Tax Payers to support this application.

More help can be found on our cost of living page.